Gold futures edged lower Friday as the dollar gained versus major rivals after a stronger-than-expected rise in U.S. nonfarm payrolls.
Gold for August delivery
The U.S. economy added 390,000 jobs in May, versus expectations for nonfarm payrolls to rise by 328,000. The unemployment rate was unchanged at 3.6% versus expectations for a tick down to 3.5%, while average hourly earnings rose 0.3% versus forecasts for a 0.4% rise.
Analysts said gold may continue to struggle as expectations for aggressive Federal Reserve interest rate hikes underpin the dollar, with the ICE U.S. Dollar Index
last month trading around a 20-year high. A stronger dollar is seen as a headwind for commodities priced in the unit, making them more expensive to user of other currencies. The index rose 0.1% on Friday.
“Over the past week, spot gold rose slightly above the upper end of its trading range between the $1800 and $1850 area,” said Peter Cardillo, chief market economist at Spartan Capital Securities, in a note. “We continue see this trading range prevailing in the near-term as the dollar’s strength caps the market’s ability to break out from the trading range.”
was down 0.9% at $4.51 a pound.